In Utopia, there is no private property, so there are no employers or employees. Instead, everyone is assigned a job by the government. The government takes into account each person's skills and interests when making assignments, and everyone is expected to work for the good of the community.
There is no unemployment in Utopia, because everyone is guaranteed a job. However, people are not forced to work if they do not want to. If someone decides to take a break from work, they are still entitled to food, housing, and other necessities.
How this is different from Europe in the 16th century
In Europe in the 16th century, most people were employed in agriculture. There was a small middle class of merchants and artisans, and a very small upper class of nobles and clergy. The vast majority of people lived in poverty.
There was no social safety net in Europe in the 16th century, so if someone lost their job or was unable to work, they were likely to starve. This led to a great deal of social unrest, and many people turned to crime in order to survive.
In contrast, Utopia is a much more egalitarian society. Everyone has access to the same opportunities, and there is no poverty. This makes for a much more stable and harmonious society.